9911796707
TMI Blog2017 (5) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... the case in rejecting the application filed by the Appellant seeking registration under Section 12AA of the Income Tax Act,1961. 2. The Learned CIT has denied the registration sought under Section 12AA on irrelevant considerations which are not material at the time of grant of registration under Section 12AA. 3. The Learned CIT has erred in law in drawing adverse conclusion in the case solely on the basis of few objects (7 in number) of the Trust being for the benefit of a particular religious community, whereas the balance 33 objects out of 40 objects stated in the Trust Deed are charitable in nature. 4. The Learned CIT during the proceedings for grant of registration under Section 12AA verified from the records submitted that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the written submissions. The learned CIT, however, refused the assesseetrust to grant registration observing as under : "A perusal of the objects mentioned in the Trust deed filed alongwith application for registration in form no. 10A reveals that they are too varied and some are for a particular religious community. The sub clauses (iii) to (xi) of the clause (4) of the Trust Deed read as under. iii. To Teach the Gospel (Good News) of Jesus Christ and the message of the Holy Bible by means of Radio broadcast, Literature distribution, Bible correspondence courses, Bible classes and other Educational medias. iv. To promote and to hold Bible meetings and conferences lo give information relating to the Christian faith. v. To establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in the favour of revenue in the case of Palhat Shadi Mahal Trust, 254 1TR 212. 4. In view of the foregoing discussion, I am not satisfied about the objects of the trust and the genuineness of its activities. Accordingly, registration is being refused to it." Aggrieved by the above order of ld. CIT, the assessee-trust is in appeal before the Tribunal. 3. During the course of hearing, the ld. AR of the assessee submitted that the Appellant is a Trust registered under the Indian Trust Act, 1882 under the name of "Pink Flowers Trust". The Trust was registered on 24th November 2011 at Dehradun. It was submitted that there are 40 objects of the Trust as defined in the Trust Deed out of which 31 objects are of a nature that they fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r religious community, which situation does not occur in the present case. Reliance is placed on the following decisions : (i). Kul Foundation vs. CIT (2015) 68 SOT 310 (ITAT Pune) (ii). Diocese of Pune(CN) vs. CIT 68 SOT 555 (ITAT Pune) (iii). CIT vs. Dawoodi Bohara Jamat, 364 ITR 31 (SC). 4. On the other hand, the ld. DR relied on the order of the ld. CIT and urged for its sustenance. 5. We have considered the rival submissions and have perused the entire material available on record. From the composite reading of objects of the Trust, we find that the assessee trust is not established solely for giving benefit to a particular religious community. Out of 40 objects of the Trust only one object No. 4 and its sub-clauses, as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, the issue arises whether the grant of registration under section 12AA of the Act could be denied to the assessee. We find no merit in the order of CIT in observing that the said benefit being provided to the Jain community would attract the provisions of section 13(l)(b) of the Act and the assessee therein would not be entitled to the claim of deduction under sections 11 and 12 of the Act and consequently, there was no merit in allowing the registration under section 12A of the Act. The allowability of the deduction under sections 11 and 12 of the Act is to be looked into by the Assessing Officer while completing the assessment in the hands of the assessee at the relevant time. Whether the said deduction under sections 11 and 12 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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